A newly launched cryptocurrency platform, EDX, is reportedly considering a shift in its custody partner strategy, hinting at a move from Paxos Trust to Anchorage Digital. Backed by prominent financial entities such as Fidelity Digital Assets, Citadel Securities, and Charles Schwab, EDX entered the market just a week ago. Notably, the platform's design emphasizes a noncustodial model, aiming to eliminate potential conflicts of interest.
Since its inception, EDX has facilitated the trading of four distinct cryptocurrencies: Bitcoin, Ether, Bitcoin Cash, and Litecoin. Bitcoin Cash has experienced a significant surge since the platform's debut, with a remarkable 70.45% rise in just one week and an astonishing 101.47% increase over the past month.
Shortly after its launch, EDX announced its collaboration with Paxos to oversee the wallet structure and the safekeeping of digital assets. However, Paxos recently faced scrutiny from the New York Department of Financial Services, although the specific reasons remain undisclosed. Additionally, Paxos' "preliminary conditional approval" for a U.S. bank charter, granted by the United States Comptroller of the Currency (OCC), expired at the end of March.
In contrast, Anchorage Digital, the potential new custodian for EDX, holds the distinction of being the first crypto firm to receive a national trust bank charter from the OCC in January 2021. However, the company encountered regulatory challenges due to Anti-Money Laundering deficiencies and ultimately consented to a regulatory order. Following this, Anchorage Digital established a custody network with several prominent cryptocurrency exchanges.
As EDX makes strides in the crypto market, it anticipates launching EDX Clearing later this year, which aims to settle trades conducted on the EDX Markets platform. Regarding the rumored custodial switch, EDX has chosen to remain tight-lipped, while Anchorage Digital has not commented on the situation.